Civics Test 2.1 Flashcards
What is supply?
The willingness and ability of producers to offer goods and services
What is demand?
The ability to but a food or service and ability to pay for it
What is total revenue?
Company’s income from selling its products
What is demand curve?
Graphics that display data from demand schedule
What is supply curve?
Graphics that display data from supply schedule
What is demand schedule?
List of how much of an item and individual is willing to purchase at every price
What is supply schedule?
List of how much an item and individual is willing me to purchase at every price
What is law of supply?
Price decreases, supply decreases, vise versa
What is law of demand?
Price increase, demand decreases and price decreases, then demand increases
What is price flour?
Legal minimum price for a good or service
What is price ceiling?
Legal max price for a good or service
What is substitutes?
Products used in place of other products to satisfy needs of wants
What are complements?
Products used together
What is marginal cost?
Extra cost of producing one more unit
What is marginal product?
Change in total output brought about by adding one more worker
What are fixed cost?
Cost that happen no matter what
What are variable cost?
Cost dependent upon the level of production output
What is total profit?
Profit you earn
What is regulation?
A rule or directive made and maintained by an authority
What is surplus?
Results when the quality supplies is greater than the quantity demanded
What is shortage?
When the quantity demanded is greater than the quantity supplied
What is equilibrium price?
The price at which the individual quantity demand and individual
How is total revenue calculated?
Price x output
What factors affect demand?
Willingness to pay, ability to pay, market size, customer taste, customer expectations
What factors affect supply?
Input cost, labor productivity, technology, govt. actions, producer expectations, number of producers
How do business owners decide the right number of workers?
Marginal product increasing and decreasing returns
How does a business calculate total profit?
Revenue-cost
What motivates producers to increase supply?
Bigger market/more consumers
What do lower prices encourage?
More supply
What does a surplus indicate?
There is more quantity supplied than quantity demanded
What does a shortage indicate?
There is more quantity supplied than quantity demanded
When customers demand more goods and services at every price, what will happen to th equilibrium?
It shifts?
